Embracing the New Normal in Real Estate

As we are cautiously engaging the new reality of our housing economy, we need to pause and ponder some of the lessons we have learned over the past ten years so that we do not repeat the same mistakes.    Following are 10 lessons to keep in mind.

1.  The economy cannot recover without housing.

2.  Everyone needs shelter, but not everyone needs to own their shelter.

3.  High homeownership rates are important but they must be sustainable.

4.  Home prices go up and go DOWN.

5.  The process of purchasing /financing a home is now more complicated.

6.  Sound underwriting of mortgages is critical.

7.  Home equity should not be used for ordinary living expenses.

8.  Financial reserves for family, companies, and countries are necessary.

9.  Homeowners confidence in the economy is directly related to the value of their own homes.

10. The economy is global.

What is important is that we remember what happened as we prepare to write the future.  Most importantly, we should also have a sense of accomplishment that we endured these life lessons.

There are seasons in the weather: spring, summer, fall and winter.  So there are in economic cycles.  It is great to be at the thaw of winter and the budding of spring.

Nancy Puder is the broker and owner of SignatureProperties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!